- Digital Wine Ventures (DW8) has closed its share purchase plan (SPP) after receiving applications to the value of $7.6 million, a 659 per cent oversubscription
- New shares were offered at 2.5 cents, a 19.2 per cent discount to the 15-day volume-weighted average price
- DW8 sought to raise $1 million from the SPP and, as such, subscriptions will be scaled back on a pro-rata basis
- The SPP follows a $5 million placement, bringing the total raised before costs to $6 million
- The funds will support the launch of the Direct-to-Trade Marketplace, the expansion of the Smart Logistics business and well as investments into other areas of the business
- Shares have been trading 9.4 per cent higher at 3.5 cents
Digital Wine Ventures (DW8) will scaleback subscriptions for its $1 million share purchase plan (SPP) after a 659 per cent oversubscription.
New shares were offered at 2.5 cents, which represents a 19.2 per cent discount to the 15-day volume-weighted average price (VWAP). The company received subscriptions to the value of $7,593,800.
Thanks to the strong interest it received, DW8 has opted to scale back applications and refund investors based on the difference between their subscription and final allocations on a pro-rata basis..
CEO Dean Taylor thanked shareholders for their support in the company's strategy.
“The support that our shareholders have shown towards this offer has been absolutely overwhelming. I know that many of our shareholders will be disappointed with the degree of the scale back but we have done our best to make sure that this has been done on a pro-rata basis and in the most equitable manner possible,” Dean commented.
“The board believes that we have sufficient funds available to execute our current business plan and did not see a benefit in creating any further dilution at this point in time by taking on any additional capital,” he said.
The SPP follows an oversubscribed $5 million placement, bringing the total raised via the campaign to $6 million before costs.
The funds will support the launch of DW8's Direct-to-Trade Marketplace and the expansion of the Smart Logistics business which supports it.
Additionally, the company will invest new capital in technology and development, sales and operational resources, advertising and marketing and general working capital.
Shares were up 9.4 per cent to 3.5 cents at 11.30 am AEST.